The three major indexes are all lower this afternoon as investors take profits.
In this article, we will examine five stocks that are in the spotlight: Virgin America Inc (NASDAQ:VA), Amazon.com, Inc. (NASDAQ:AMZN), Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), KBR, Inc. (NYSE:KBR), and American Airlines Group Inc (NASDAQ:AAL). In addition, we will take a look at what smart money investors from our database think about the companies in question.
We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).
Virgin America Inc (NASDAQ:VA) is in the spotlight after the company reported its September preliminary operational results. Virgin America’s traffic measured in revenue passenger miles rose by 24.2% year-over-year in September, while the company’s capacity measured in available seat miles jumped by 15.1% on the year. Load factor came in at 84.2%, a 6.1 point rise from September 2015. In addition, the number of on-board passengers advanced by 19.7% year-over-year to 673,000. Of the 749 funds we track, 25 funds owned $927.01 million worth of Virgin America Inc (NASDAQ:VA)’s stock, which accounted for 37.30% of the float on June 30, versus 27 funds and $518.31 million, respectively, on March 31.
Amazon.com, Inc. (NASDAQ:AMZN)‘s seemingly endless quest to expand might entail some convenience stores in the company’s future. According to the Wall Street Journal, the e-commerce giant plans to roll-out brick-and-mortar convenience stores in addition to curbside pickup spots to offer fresh groceries to its customers. Amazon is entering the physical realm mainly to capture demand from people who would like to physically pick up their produce and groceries (as opposed to having them delivered). Ken Fisher’s Fisher Asset Management owned just under 2 million shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of June, down by 21% on the quarter.
On the next page, we find out why Himax Technologies, KBR, and American Airlines Group are trending.